HomeMy WebLinkAboutCity Council Committees - Operations Committee - 09/19/2017Operations Committee
Minutes
Approved October 3, 2017
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Date: September 19, 2017
Time: 4:00 p.m.
Place: Chambers East
Attending: Bill Boyce, Les Thomas and Dana Ralph, Chair
Agenda:
1. Call to Order.
2. Roll Call.
3. Changes to the Agenda.
Item #11 Non-Represented Salary Survey – Information Only was added for
continued discussion from the September 5 meeting.
4. Approval of Check Summary Reports dated 8/16/2017 thru
8/31/2017.
L. Thomas moved to approve the check summary report dated 8/16/2017
thru 8/31/2017. B. Boyce seconded the motion, which passed 3-0.
5. Approval of Meeting Minutes dated September 5, 2017.
B. Boyce moved to approve the Operations Committee meeting minutes dated
September 5, 2017. L. Thomas seconded the motion, which passed 3-0.
6. Ordinance approving the indirect change of control of Astound
Broadband, LLC d/b/a Wave Franchise – Recommend.
Civil Attorney Christina Schuck asked members to move forward an indirect
change of control ordinance. The indirect change of control is a result of
Radiate Holdco, LLC (Radiate) entering into an agreement to acquire all of the
outstanding membership interests of Wave Holdco, LLC (Wave), which is the
parent company of Astound Broadband, LLC (Astound). The agreement is to
operate a telecommunications system within the City.
The original Ordinance No. 4144 went into effect April 2015 granting a
nonexclusive telecommunications franchise to Astound. On May 18, 2017,
Radiate entered into an agreement to acquire all outstanding membership of
Wave, the parent company of Astound.
L. Thomas moved to recommend Council adopt an Ordinance approving the
resulting indirect change of control of the Astound Broadband, LLC d/b/a
Wave franchise with conditions and establishing an effective date, subject to
final approval by the city attorney. B. Boyce seconded the motion, which
passed 3-0.
Operations Committee
Minutes
Approved October 3, 2017
Page 2 of 3
7. Internal Financing – Phase 1 LID 363 Project – Recommend.
Finance Director Aaron BeMiller brought forward a request to approve an
internal loan of $3,200,000 to finance Public Works’ phase 1 of the LID 363
224th Street project. If approved by full Council, the loan will come from the
Sewerage Operating Fund and will be paid back in installments of $350,306.58
over a period of ten years. The annual interest rate is to be the higher of 1.68
percent or the annualized interest rate earned on the investments in the Local
Government Investment Pool.
The loan request was initially presented at the September 11 Public Works
Committee meeting as an information only item.
B. Boyce moved to recommend Council adopt an ordinance approving the
internal financing for Phase 1 of the LID 363 Project in an amount not to
exceed $3,200,000. L. Thomas seconded the motion, which passed 3-0.
8. City of Kent Fund Balance Policy – Information Only.
Mr. BeMiller provided members with the newly updated fund balance policy. In
2012, through Resolution 1859, councilmembers established and approved the
financial policies which included fund balance policy language for several
funds, including the general fund. Over the past year, finance staff has been
working on updating the established 2012 fund balance policy by using the
Government Finance Officers Association best practices, which includes
periodic review to address areas in need of modification/clarification.
The new fund balance policy establishes fund balance levels for city funds for
the purpose of addressing unanticipated and non-recurring operational needs.
The policy addresses the appropriate uses of fund balance, the need for
repayment plans should fund balance fall below the minimum level, and the
need for long-term financial planning in the event of operational restructuring
necessitating the use of fund balances. The policy also sets the activities for
which fund balance levels above the minimum balance at the end of the fiscal
year may be used.
9. July Financial Report – Information Only.
Mr. BeMiller reported an overall positive budget variance of $2.7 million. The
2017 budget reflects an expected use of $2.4 million of fund balance, including
$2 million for Parks capital projects. The budgeted use of fund balance is offset
by the positive budget variance of $2.7 million, creating a net surplus of
$305,000. General Fund Reserves are estimated to end the year at $17.9
million, or 18.6 percent of estimated 2017 expenditures. The following
highlights were reported:
Operations Committee
Minutes
Approved October 3, 2017
Page 3 of 3
Revenues are estimated to end the year at nearly $2.6 million or 2.7 percent
higher than budgeted.
Expenditures through July show all departments are remaining fairly close to
budget with an overall favorable budget variance of $172,000 or 0.2 percent.
10. Director’s Report – Information Only.
Mr. BeMiller updated members on the State Auditor’s Office (SAO) two-part
finding regarding the Brownsfield grant, they are:
Timely payments of bills from vendors: a department within the city was
not doing that as timely as should be. Finance will be working with that
department to continue to improve in that area.
Federal funded programs: staff has to ensure vendors being used are
not on the suspension and disbarment list. The documentation that was
needed to prove that step had been taken could not be located.
Overall, both the City and SAO feel this was a good collaborative process to
complete the audit. The exit conference was Friday, September 22.
11. Non-Represented Salary Survey – Information Only.
Human Resources (HR) Director Marty Fisher provided information of what’s
been learned since the September 5, 2017 non-represented salary survey
presentation. The Labor Classification and Compensation division of the HR
department have reviewed all processes and calculations related to salary. Two
key discrepancies were found that need to be corrected, they are:
Two additional non-represented classifications were found to be under
market average: a parks superintendent going up one range and four
HR managers going up one range.
Processes used for calculating target market averages for AFSME
salaries included flat increases. The non-represented calculations did not
include the 2018 cost-of-living projections (flat increases). Once the flat
increases were taken out of the AFSME salaries and recalculated it was
found that nine AFSME positions need a one-range increase to bring up
to market level.
12. Adjournment.
The meeting was adjourned at 4:50 p.m. by D. Ralph.
J. Hays
Jennifer Hays
Operations Committee Secretary